Lincoln seeing a little relief at the pump
By: Ian Hest
Remember when analysts were worried gas prices could hit $4 this summer? So far it seems to be going in the opposite direction, but how long will that last?
Keep in mind this time last year, the average gallon of gas here in Lincoln cost about $0.30 more than it does today, but oil prices have gone way down. So, where's the disconnect?
“Oil is not 100% the cost of a gallon of gasoline. So, just because the price of oil falls 20 percent doesn't mean the price of gasoline should fall 20 percent,” said Eric Thompson, an Economics Professor at UNL.
Nevertheless, a little relieve at the pump is much appreciated. Eric Thompson, says the reason we're seeing that decrease is because as developing nations need more fuel, there's competition, meaning lower prices in the short term.
“I think we'll be somewhere between $3 and $3.75 for most of the Summer,” said Thompson.
Here in Lincoln, we're right in the middle, at about $3.45 a gallon, which is more than $0.30 lower than it was this time last year. But the price of oil is 2/3 what it was a year ago.
Thompson says that barring a dramatic international crisis, gasoline prices might start catching up and continue to fall, but those on the road aren't keeping their fingers crossed.
A lot of people we spoke with say they have noticed cheaper prices. In some cases, travel plans that people thought they couldn't make, now can. A lot of others, though, are just happy to have a few extra bucks in their wallet.